Case Summary: IMG Holdings (Dana Classic Fragrances) Chapter 11

Business Description

IMG Holdings, Inc., through its primary operating subsidiary Dana Classic Fragrances, Inc. (together with its affiliates, the "Company"), is a New York-based personal care and perfumery business that manages and markets a portfolio of iconic, long-established fragrance brands.

• The Company’s signature products include legendary mid-20th-century scents such as Tabu (launched in 1932), Chantilly, Love’s Baby Soft, English Leather, and British Sterling, many of which were acquired from other fragrance houses over time.
• The Company’s product lineup, which includes perfumes, colognes, aftershaves, body sprays, and gift sets, is sold direct-to-consumer through its e-commerce website (DanaClassics.com) and distributed through major retailers, including Walmart and Amazon.

Despite its well-known brands, the Company is a small-scale enterprise, generating approximately $3.5 million to $4 million in annual gross sales in recent years. The Company operates a lean, remote-only model with just five employees as of the Petition Date, outsourcing nearly all production and distribution functions.

IMG Holdings, Inc. and 5 of its affiliates⁽¹⁾ (the "Debtors") filed for Chapter 11 protection on August 11, 2025 (the "Petition Date") in the U.S. Bankruptcy Court for the District of Delaware, reporting $1 million to $10 million in assets and $50 million to $100 million in liabilities.

⁽¹⁾ For a complete list of debtor entities, see the organizational structure chart below.

Corporate History

The Company traces its origins to 1932 with the founding of the House of Dana in Barcelona, Spain, by Javier Serra. Its first perfume, Tabu, became a global classic and established the brand's reputation. The business later relocated its base to Paris, eventually moving primary operations to the United States during the 1940s amid World War II.

Portfolio Expansion and Ownership Changes

• Through the 1990s, the Company bolstered its portfolio by picking up licenses to legacy perfume lines such as Chantilly, Love’s Baby Soft, English Leather, British Sterling, Toujours Moi, Monsieur Musk, Heaven Sent, and Navy for Women.
• In 1995, Renaissance Cosmetics, Inc. bought Dana Perfumes Corp. as part of a strategy to revive and consolidate classic fragrance brands. Four years later, Renaissance collapsed under a debt load and entered Chapter 11 (Case No. 99-02136). In mid-1999, its fragrance assets were sold for about $29 million to Fragrance Express and Dimeling, Schreiber & Park. The buyer consolidated operations under the banner New Dana Perfume Corp., keeping manufacturing and distribution in-house.
• By 2003, New Dana’s chief executive Isaac Cohen carved out Dana Classic Fragrances, Inc., which acquired the fragrance trademarks and assumed responsibility for brand management, sales, and distribution, while New Dana continued to manufacture at its Mountain Top, PA plant under contract.

Shift to Asset-Light Model

• In late 2004, New Dana Perfumes shuttered its Mountain Top, Pa. plant, eliminating roughly 200 jobs. With the closure, manufacturing was no longer performed in-house.
• Dana Classic continued to own the trademarks and oversee marketing and sales, while outsourcing production to third-party manufacturers. The closure cemented an asset-light operating model focused on brand management and licensing rather than manufacturing.

The Patriarch Partners Era

• In the late 2000s, the Company obtained financing from Lynn Tilton’s Patriarch Partners, with the Zohar CLOs (Zohar I, II, III) becoming majority equity holders. Patriarch, as collateral manager of the Zohar funds, retained broad governance and consent rights.
• In 2018, the Zohar funds filed Chapter 11, leading to a court-approved plan that shifted fund assets into creditor recovery vehicles. Equity interests in the Company were ultimately allocated to Phoenix II Recovery, LLC (85.2% as of the Petition Date) and Phoenix Recovery III, LLC (14.8% as of the Petition Date), entities formed for the benefit of Zohar creditors. Patriarch Partners Agency Services continues to act as agent on certain loan facilities.

Corporate Organizational Structure

Operations Overview

The Company operates a streamlined, asset-light business model focused on brand management, with nearly all physical production and logistics outsourced to third-party partners.

Manufacturing and Supply Chain

• The Company sources and blends all its fragrance oils and solutions within the United States to maintain quality control.
• Physical components, including glass bottles, caps, and pumps, are procured from manufacturing partners in China.

Trademarks

• Exhibit A: Trademarks – List of Dana common-law and IMG registered marks with goods, first-use dates, and USPTO registration.

Sales and Distribution

• The Company sells through a multi-channel strategy, including:
  • Direct-to-consumer via its own e-commerce site, DanaClassics.com.
  • Mass-market retailers including Walmart, Amazon, drugstores, and other discount chains.

Prepetition Obligations

Top Unsecured Claims

Events Leading to Bankruptcy